The US trade deficit in goods widened to a record level in 2025 even as overall trade flows expanded, underscoring persistent import strength despite tariffs imposed during President Donald Trump’s first year back in office, according to the US government data.Data released by the Commerce Department showed the US goods deficit reached $1.24 trillion in 2025, slightly wider than the previous year’s level. The figures come despite sweeping tariffs introduced by the administration during the year.Separate data from the US Census Bureau and the Bureau of Economic Analysis showed the overall goods and services trade deficit stood at $70.3 billion in December, rising $17.3 billion from a revised $53.0 billion in November.Exports in December totalled $287.3 billion, down $5.0 billion from the previous month, while imports climbed $12.3 billion to $357.6 billion, driving the widening imbalance. The increase reflected a $15.7 billion jump in the goods deficit to $99.3 billion alongside a narrowing services surplus, which fell $1.6 billion to $29.0 billion.For the full year, however, the combined goods and services deficit edged lower by $2.1 billion to $901.5 billion in 2025. Exports rose strongly by $199.8 billion, or 6.2 per cent, to $3,432.3 billion, while imports increased $197.8 billion, or 4.8 per cent, to $4,333.8 billion.The annual decline in the overall deficit reflected a larger services surplus, which expanded by $27.6 billion to $339.5 billion, partly offsetting a $25.5 billion increase in the goods deficit.Trade flows showed mixed trends across sectors. Goods exports were lifted by gains in capital goods, computers, civilian aircraft and industrial supplies, while imports surged in capital equipment, telecommunications gear and computer accessories. Services exports also strengthened, led by growth in business services, intellectual property charges and financial services.Monthly data indicated shifting trade balances with key partners. In December, the United States recorded trade deficits with Taiwan ($19.8 billion), Vietnam ($17.6 billion), Mexico ($14.5 billion), China ($12.4 billion) and the European Union ($11.1 billion), while posting surpluses with the Netherlands, the United Kingdom and Brazil.Over a three-month average basis, the goods and services deficit widened to $50.7 billion by December, as average imports rose while exports softened modestly.The report noted that all figures were seasonally adjusted and that the next release schedule remains uncertain following a recent lapse in federal funding.